U.S.-Iran deal updates: Israel says no Lebanon withdrawal, Iran says funds expected before final talks
Iran’s Revolutionary Guard stated it will receive half of its $24 billion frozen funds before final negotiations under the U.S.-Iran deal, though a U.S. official insisted no funds will be released until Iran demonstrates compliance. Israel rejected claims it must withdraw from Lebanon or end hostilities with Hezbollah, while President Trump announced the Strait of Hormuz will reopen and the U.S. naval blockade on Iran will lift after the agreement is signed Friday.
A memorandum of understanding (MOU) between the U.S. and Iran has been digitally signed by President Trump, Vice President JD Vance, and Iranian Parliament Speaker Mohammad-Bagher Ghalibaf, though the full text remains unreleased. The deal, expected to be finalized Friday, includes a 60-day ceasefire extension and the release of half of Iran’s $24 billion in frozen funds prior to final negotiations, according to Iran’s Revolutionary Guard. A U.S. official countered that no funds will be released until Iran proves compliance with the agreement’s terms. Israel’s government clarified it is not bound by the deal’s provisions to withdraw troops from Lebanon or halt operations against Hezbollah, despite claims by President Trump, Pakistani mediators, and Iran that the agreement mandates a cessation of hostilities across all fronts. The U.S. has maintained its naval blockade on Iranian ports and vessels remains in effect as of Monday. The announcement of the deal triggered a sharp drop in oil prices, with Brent crude falling $4.22 to $83.11 per barrel and West Texas Intermediate tumbling $4.41 to $80.47. U.S. stock markets surged to record highs, with the S&P 500 rising 1.5%, the Dow Jones climbing 1% to an all-time high of 51,725, and the Nasdaq gaining 2.2%, reflecting optimism over potential economic relief amid high inflation. Discussions between the U.S. and Iran did not address the fate of four detained American nationals in Iran, including journalist Abdolreza 'Reza' Valizadeh, designated as wrongfully detained by the U.S. State Department in May 2025, and Kamran Hekmati, arrested in July 2025. Iranian officials confirmed negotiations focused solely on the broader agreement terms. President Trump also stated the Strait of Hormuz, a critical global crude transit route, will reopen Friday following the deal’s signing.
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